What Happens When a Representation Agreement Expires

When a representation agreement expires, it can leave both parties wondering what the next steps are. Whether you are the client or the representative, it is important to understand the implications of an expired agreement.

First and foremost, an expired representation agreement means that the representative is no longer legally authorized to act on behalf of the client. This means that any actions taken by the representative after the expiration date could be considered unauthorized and could result in legal consequences.

For clients, it is important to note that an expired representation agreement does not necessarily mean that the relationship with the representative has ended. In fact, many representation agreements include provisions for renewal or renegotiation. It is up to the client to decide whether they want to continue working with the same representative or seek out a new one.

If the client decides to renew or renegotiate the agreement, the representative may have to go through a reapplication process. This typically involves providing updated information and documentation to ensure that the representative is still qualified to act on behalf of the client.

On the other hand, if the client decides to end the relationship with the representative, they should notify them in writing as soon as possible. This not only ensures that the representative is aware of the situation, but it also protects the client from any unauthorized actions taken by the representative after the expiration of the agreement.

In some cases, the terms of the expired representation agreement may still apply. For example, if the agreement included a non-compete clause, the representative may still be bound by those terms even after the agreement has expired. It is important to consult with legal counsel to determine the extent of any ongoing obligations.

In summary, when a representation agreement expires, both parties should be aware of their legal rights and obligations. Clients should consider whether they want to renew or renegotiate the agreement, while representatives should be aware of any ongoing obligations from the expired agreement. By understanding the implications of an expired representation agreement, both parties can ensure a smooth transition and protect their legal interests.